Free Look Period in Health Insurance

Key Features of Free Look Period in Health Insurance?

Below are the key features of the free-look period for health insurance to be considered.

1. Benefit can be availed within the prescribed time limit

The free look period of 15 days from the date of buying the policy is the duration during which the policyholder must cancel the policy or get the policy changed. Failing to do so will deny your chances of returning the policy or to request for an alternation in the policy

2. Submit policy cancel request

The insured must submit a written request to cancel policy and to avail the benefits of the free look period. The cancellation request can also be initiated by filling a form online. For this, you can visit the official website of the insurer and download the form

3. Furnishing of Details

Also, to cancel a policy during the free look period, there are certain details that the insured need to furnish such as

• The date of receiving policy document
• Agent details (if the policy is bought through an agent)
• The reason why you want to cancel the policy 
• Valid bank account detail for sum refund etc.

4. Policy cancellation documentations

It is necessary to submit original documents to complete the process of policy cancellation. And for this, you will have to submit the first paid premium receipt along with a cancelled cheque of your bank account to initiate the refund.

5. Refund after certain deductions

When you cancel a policy, you would get the refund of the premiums paid after deducting a minimum charge, including;

• Stamp Duty charges
• Risk premium for duration of coverage
• Any expense paid by the insurance company towards a medical test (if any)

Process to Cancel a Policy Within Free-look Period

Here are the steps that an insured should follow while cancelling a policy under free look period insurance:

• insurance plan once you have received it
• Immediately get in touch with the customer care department of the insurer via email or call to submit a request for cancellation. In case you have bought the plan from an agent or an insurance broker, you can contact them to initiate policy return during a free-look period
• Once that is done, the insurer sends an endorsement and refunds the premium you have paid within 7 working days
• However, keep in mind that the policy cancellation is possible only during the free-look period
• However, if you miss the free look period, you will have to wait till the time of policy renewal to port it

Applicable Conditions

• Health insurance companies generally pay 50% of the cost for medical tests which are renewed on a yearly basis. While refunding the premium amount in case of policy cancellation, the insurer deduct this amount
• Any health plan such as an indemnity policy or specific benefit plan like critical illness insurance policy allows a 15 days window to cancel the policy. But there is an exception. A policyholder can avail the free-look period only if the policy is bought for a tenure of 3 years